Where's the Game?

[Commentary] More than three million cable subscribers in the New York City area couldn't watch the first game of the 2010 World Series. That's because of the continuing brawl between Cablevision Systems and the Fox networks over who should get a bigger share of subscribers' fees. The blackout is still going on.

This isn't just a problem for die-hard baseball (or "Glee") fans in New York. Millions of subscribers around the country can expect a similar fight between the News Corporation, which owns Fox, and the Dish Network, a satellite service, when their agreement expires Oct 31. All of this underscores the sweeping changes in the economics of TV. When retransmission arrangements were first made 20 years ago, the balance of power was roughly equal: broadcasters had unique content and cable operators had market monopolies. While broadcasters did not charge for their signal, cable systems agreed to pay for new cable channels. Satellite television, Verizon FiOS and cable rivals have tilted the balance toward broadcasters. With ad revenue dropping, they want to get paid well for broadcast shows.

There isn't much regulators can do. The law says the Federal Communications Commission must ensure companies negotiate in "good faith." That doesn't mean they can't deadlock over price. Washington must not put a thumb on the scale. The fact that broadcasters also use the public airwaves justifies intervention to bring transparency to the process. Meanwhile, Fox and Cablevision should cut a deal.